Domino's Pizza Distribution Corp management is described to
illustrate the advantages and disadvantages of a decentralized corporate
structure. Domino's Pizza Distribution provides the food supplies
and equipment for 95 percent of the 4,000 stores and franchises in the
Domino's Pizza chain. In 1986, Distribution had profits of $13.7
million on sales of $402 million. Decentralization creates a corporate
culture that values independent thinking, initiative, and personal
responsibility, but decentralization can also result in high turnover,
miscommunication, and difficulties in evaluating team performance.
Tactics that have helped to overcome these problems at Domino's
include: keeping management levels and team size to a minimum, close
contact between regional managers and line managers, standardized
training programs, and performance bonuses.

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